Comparative financial statements for Weaver Company follow:

During 2014, Weaver sold some equipment for $10 that had cost $49 and on which there was accumulated depreciation of $30. In addition, the company sold long-term investments for $50 that had cost $38 when purchased several years ago. A cash dividend was paid during 2014 and the company repurchased $109 of its own stock. Weaver did not retire any bonds during 2014.

Required:

1. Using the direct method, adjust the companys income statement for 2014 to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)

2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2014. (Cash outflows and amounts to be deducted should be indicated with a minus sign.)

Comparative financial statements for Weaver Company follow Weaver Company Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Assets 9 21 Cash 380 Accounts receivable 610 175 240 Inventory Prepaid expenses 10 Total current assets 649 580 Property, plant, and equipment 690 Less accumulated depreciation 80 70 Net property, plant, and equipment 610 510 Long-term investments 10 48 1,424 1,207 Total assets Liabilities and Stockholders' Equity 400 290 Accounts payable Accrued liabilities 50 60 Income taxes payable 85 78 428 Total current liabilities 535 Bonds payable 390 280 708 925 Total liabilities Common stock 341 450 158 Retained earnings 49 Total stockholders' equity 499 499 Total liabilities and stockholders' equity 1,424 1,207